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Pioneering the next generation of tools and techniques for market supervision and policy analysisSimone di Castri, DirectorWashington, D.C. | 19 April 2017@ludicastri @R2Accelerator
Just as new technologies have transformed the delivery of financial services, they could be equally transformative in improving regulatory oversight and policy development.
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“RegTech for Regulators”
Technology-enabled solutions can critically transform financial authorities’ capability to collect, analyze and use data, in order to:
1. Improve market oversight
2. Develop smarter, proportional, risk-based regulation
3. Lower financial services providers’ cost of compliance
4. Strengthen consumer trust and participation in the financial system
This is
4R2A is an acceleratorfor financial authorities and innovators for the deployment of RegTech solutions, and a contributor to the creation of a global RegTech marketplace.
Expected outcomes
Financial authorities and innovators in three markets have
prototyped cutting edge technology solutions for market
oversight and policy development.
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Participating financial authorities have familiarized with innovative engagement processes to attract
innovators and generate new solutions for market oversight and
policy development.
Innovators have familiarized with financial authorities’ work streams,
pain points and requirements.
Participating financial authorities play a leadership role in sharing
learnings and good practices with peers.
RegTech is recognized as an important capacity-enhancing tool
for financial authorities.
The foundations of the RegTech for Regulators marketplace are
built.
6R2A partners with leading financial sector authorities and innovators to pioneer the next generation of tools and techniques for market supervision and policy analysis.
Twenty-months, three phases:
Identifying potential solutions:Engaging innovators through competitions to crowdsource
innovative ideas that meet regulatory and supervisory
needs.
Months 1-6 Months 10-20Months 7-10
Defining the opportunity:Assessing partnering with financial authorities their
needs, selecting a specific area of opportunity, and defining
the requirements of potential solutions.
Testing prototypes:Co-design, development, and
testing of ideas among financial authorities and
innovators.
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I II IIIOctober 2017 July 2018
What R2A offers to its partners
BRIDGE WITH INNOVATORSTECHNICAL ASSISTANCE
§ Experts in regulation, supervision and the use of artificial intelligence and other technologies support partnering financial authorities and innovators.
§ Selection of innovators to prototype RegTech solution (through competition).
§ Funding selected innovators.
KNOWLEDGE EXCHANGE
§ Peer learning opportunities (both in-person and online) with cohort of financial authorities, expert FinTech advisors, and other selected stakeholders in the emerging RegTech community.
PROJECT MANAGEMENT
§ Management of entire process from identification of use case and selection of innovators through development and testing of prototype RegTech solution.
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Possible applications
§ Mechanisms for crowdsourcing DFS consumer experiences from, e.g., GIS-tagged transactions/complaints overlaid on a map, to allow the regulator to understand their experience and needs.
§ Interactive technologies, such as chat bots, to “triage” incoming communication and direct consumers to their appropriate point of contact.
§ Automated analysis of information available on social media and other internet sources to proactively identify issues (e.g., natural language processing).
§ Machine learning to identify patterns among a wealth of data on DFS transactions across various channels.
§ Optical Character Recognition (OCR) and Natural language processing (NLP)to mine information.
§ Tools for improving the timeliness and reliability of compliance reporting data (e.g., APIs), and for making them suitable for more complex analytics.
§ Dashboards and other visualizations to allow for more up-to-date, customizable policy analysis.
§ Prescriptive analytics to better target scarce resources for deeper review and on-site supervision.
CONSUMER PROTECTION DATA ANALYSIS RISK-BASED KYC/AML/CFT
Contact [email protected]@R2Accelerator
